Shoprite (SHP) H2 2024 earnings summary

Executive summary

• Group revenue rose 12.0% to R246.1 billion, with Supermarkets RSA sales up 12.3% to R195.0 billion and like-for-like sales up 6.3%, achieving strong market share gains and customer-centric execution.

• Opened a net 292 new stores, created 6,490 new jobs, and expanded into new retail adjacencies, with Sixty60 online sales up 58.1% and Xtra Savings membership reaching 31 million.

• Recognized as Top Employer 2024 and Company of the Year, with significant employee trust payouts and ongoing investment in people and technology.

Financial highlights

• Trading profit increased 12.4% to R13.4 billion; EBITDA reached R20.5 billion; gross profit rose 11.7% to R57.8 billion with gross margin at 24.0%.

• Diluted headline EPS up 7.4% to 1,245.2c; adjusted DHEPS up 10.3% to 1,273.2c; dividend per share up 7.4% to 712c.

• Net cash position rose to R8.8 billion; borrowings to equity ratio improved to 21.6%.

• Free cash flow conversion ratio at 76%; operating cash flow to EBITDA at 117%.

• Return on equity improved to 26%; ROIC (excl. IFRS 16) at 16.3%.

Outlook and guidance

• July 2024 Supermarkets RSA sales show positive volume growth with internal inflation at 3.0%, and inflation expected below 5% for the coming year.

• Plans to open 265 new stores in FY25, with R8.0 billion in capex focused on new stores, refurbishments, and technology.

• Medium-term target for non-RSA trading profit set at R600–700 million, contingent on currency stability.

• Positive consumer outlook driven by wage growth, reduced load-shedding, and expected rate cuts.